Summer work programme for school students

For the second year running, the State Employment Agency is organising summer jobs for school students. A pilot programme in 2004 created jobs for 3,100 students aged 15-18 years at 451 Latvian companies and state institutions. In 2005, the agency tripled the programme’s funding. There is a lot of interest in the programme from employers and students. The students gain an insight into industrial relations and employment contracts, learn to work regularly, and see a variety of workplaces. However, some employers complain that it can be difficult to establish formal a working relationship with the children, in terms of fulfilling the employment contract.

Legal and historical background

In Latvia, the labour law and Cabinet of Ministers Regulation No. 206 of 28 May 2002, which regulate children’s employment, include prohibitions on employing teenagers in certain jobs, with exceptions permitting such employment in connection with professional training. The Cabinet of Ministers Regulation No. 205 of 28 May 2002 regulates the procedures for applying for permits to employ children - as contractors in cultural, artistic, sporting and advertising events, and includes provisions for attaching restrictions to any permits granted.

Latvian labour law prohibits the employment of children, i.e., those aged younger than 15 years or those who are continuing their basic education up to the age of 18 years. In exceptional circumstances, with the written consent of one parent, children aged over 13 years may be employed outside of school hours in light, child-safe work that is not harmful to health, morals or development. This type of employment must not hinder the child’s education. Several other prohibitions apply to child labour but the law considers summer work for students to be an exceptional case.

The first attempt to organise summer work for school students was in 2004, when the State Employment Agency (Nodarbinātības Valsts aģentūra, NVA) launched a pilot programme. This permitted the employment of students aged 15-18 years in summer jobs, in accordance with permits and prohibitions stipulated by the labour law and its accompanying Cabinet of Ministers Regulations. The NVA provided 50% of the minimum wage (EUR 113 a month), with employers having to pay the other half. Students’ summer work was classified as work placement.

The 2004 summer work programme

There was a huge response to the summer work programme in 2004. More than 7,200 students applied for subsidised positions but limited funding (EUR 213,431) meant that jobs could be found for only 3,100. Contracts to employ students were signed with 451 employers throughout Latvia. Most students worked in retailing, utility services, processing industries, state administration, agriculture and health care. In 2005, the NVA tripled the programme’s funding to EUR 640,295, enabling the creation of subsidised jobs for around 9,000 students. The first information about student employment appeared in the press as early as February 2005.

The conditions for employment remained unchanged. The legal basis for students’ summer jobs is the NVA procedures for organising summer vacation employment for persons aged 15-18 years who are enrolled in general, specialised or professional educational institutions. These procedures specified that employers wishing to offer students jobs had to submit an application to the central or regional NVA office by 22 April 2005. Employers were required to submit a statement from the State Revenue Service (Valsts Ieņēmumu dienests, VID) confirming that they did not owe taxes or state social insurance payments, and to document the work supervisor’s educational qualifications and work experience. A committee established by the NVA evaluated the suitability of employers and granted permission to employ students in summer jobs.

Students aged over 15 years could apply for work. Students aged up to 18 years could be employed for seven hours or half a day, while those aged 18 years could work eight hours. Young people who wanted to work over the summer had to apply to the NVA between 25 April and 25 May 2005. When registering for work, students have to present their passport or birth certificate, a statement or entry in their passport regarding their place of residence, and an attendance certificate from their schools. After receiving instruction about the work, each student is given a tax book from the VID and has to produce a health certificate from a medical institution or family doctor.

The programme permits students to work any time from 1 June to 31 August but subsidised jobs cannot last longer than one month per student. The lowest payment level is the minimum wage, with the NVA and the employer paying half each, as outlined above. An employer can pay more but the NVA contribution is still just half of the minimum wage.

The supervisor also gets a bonus of, depending on the number of students employed, between EUR 28 and EUR 113 for the month. Employers pay the students’ social insurance. Any employer cannot have more than 12 students at a time; employers who want to hire more than 12 students may do so but will not get the subsidy. In that case, the NVA gives preference to employers who provide good working conditions, e.g. higher wages, transport costs or free meals.

Once the applications have been processed, the students meet with representatives of their potential employers. Students must bring to the meeting their medical certificates and tax books, and the instructions they received from the NVA about the possible work placement. They must also bring a signed statement from a parent saying that they have been informed about the student’s intention to work and take responsibility for the work.

On the last day of work, employers pay the students and submit a report on the placement to the NVA, attaching the wage lists for both the students and the work supervisor. Only after employers have submitted all the necessary documents does the NVA pay them the 50% student-wage subsidy.

Type of jobs offered

There was even greater interest in the programme in 2005 than in 2004. Companies became involved in organising summer jobs for students for a variety of reasons - to take advantage of state co-financing, to give their full-time workers time off for summer vacations, and to look out for potential future staff.

Employers say that the NVA programme is useful although there are some administrative difficulties. They must enter into contracts with the students but, sometimes, the students quit before their contracts end. For example, some students would prefer to work a few days on a farm and get paid immediately than to establish regular employment relations with an employer and wait for payment. NVA staff acknowledge that, sometimes, students change their minds and do not show up for work.

In 2005, as in 2004, most students were employed in retail stores, food enterprises and construction. Job placements also included work in utility services, reprocessing plants and social welfare.

In 2004, the programme’s biggest employers were the retail enterprises VP Market Ltd (SIA VP Market), Kesko Food Ltd (SIA Kesko food) (retailing), Trials Ltd (SIA Triāls) (meat processing), Statoil Latvija Ltd (SIA Statoil Latvija) (petrol retailing), training and research farms under the Agricultural University of Latvia (Latvijas Lauksaimniecības universitāte, LLU), Laima JSc (A/S Laima), Staburadze JSc (A/S Satburadze) (confectionery production), the Children’s Clinical Hospital (Bērnu klīniskā slimnīca) and regional enterprises. The information for 2005 has not been collated yet but it is known that jobs were offered by Statoil Latvija Ltd (petrol retailing) and Rimi Baltic (retailing - 599 cashier/assistant positions at its stores throughout Latvia).

Opportunities to gain experience of the workplace

The NVA specialists responsible for the student employment programme state that, although the aim of the project is to give students a chance to earn some money, this is not its main effect. The summer jobs give students practical work experience and knowledge about the job market, and about employment law and regulations. They learn how to communicate with employers, find out how to conclude an employment contract and get an idea of what fair payment for work is. Working in low-qualification jobs helps them to appreciate the importance of education. Summer work also gives students an insight into various workplaces and jobs, thereby helping them to decide their future professions.

Latvia’s labour law does not prohibit students from working in short-term jobs on their own initiative. High school students take advantage of this to work in retail stores, sell home-made souvenirs or work in gardens, farms or cafés. Music students perform on the streets, both for practice and to earn money.

The students admit that it is hard to find jobs by themselves, especially without the help of their parents. Often, they are employed illegally, paid less than adults for doing the same work, and employers do not pay their taxes. The NVA programme makes it easier to get a legal job. Although the jobs it offers are basic, the average young person does not have many opportunities to get a qualified job outside the programme.

The NVA plans to continue the programme next year.

Commentary

There are other forms of organised summer work for students. For example, in Ogre, the local government planned to employ 117 youths on improvement works around the city. The City Council decided to pay students EUR 1.42 per day, plus lunch, to do clean-up work around the city’s park and stadium. Although European Social Fund funds are available for creating jobs for young people, the target group for this programme is 18-25 year olds. The NVA organises work practice with employers for younger students.

Schools may also arrange placements for young people, for example, on farms. The farms are happy to take on the student workers but unwilling to pay high wages or taxes. The farms aim to pay for work done, which means that the students can earn up to EUR 7 per day.

Students from Latvia are also offered jobs abroad. For example, the American Southwestern Company advertised in 2004 and 2005 for students to sell books, door to door. There is a lot of interest in this work, with about 10 applicants for every position and, in 2004, 12 students from Latvia took part. (Raita Karnite, Institute of Economics, Latvian Academy of Sciences)